With congressional action on legislation uncertain due to the recess, the U.S. SEC and CFTC are moving to advance their own cryptocurrency regulatory frameworks, including joint public consultation and revisions to asset custody rules.
The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are accelerating the development of their own rules even as passage of the CLARITY Act in Congress is delayed, Decrypt reported. In June, the two agencies launched a joint request for public comment on defining swaps, security-based swaps and emerging products, as well as establishing jurisdiction.
Former financial regulators, including former CFTC Chairman Christopher Giancarlo and former SEC Commissioner Steven Wallman, submitted a comment letter warning that improperly designed regulatory standards could drive high-yield financial markets and liquidity overseas.
Meanwhile, the SEC submitted proposed revisions to digital-asset custody rules for investment advisers and investment companies to the White House Office of Information and Regulatory Affairs (OIRA) for review. The proposal appears intended to establish lawful cryptocurrency custody arrangements for institutions, but its detailed provisions have not yet been disclosed.